Job-work scrap duty liability ends after 1-4-2000, so principal manufacturers are not liable for waste generated at the job worker's end.

Waste and scrap generated at a job worker's premises after 1-4-2000 were held not dutiable in the hands of the principal manufacturer, because the relevant rule regime had ceased to operate from that date. The Tribunal followed earlier decisions on the post-1-4-2000 position and distinguished the Revenue's contrary reliance on an earlier period before that cutoff. The operative principle is that duty liability for job-work scrap cannot be fastened on the principal manufacturer once the applicable regime no longer applies.

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Issues: Whether waste and scrap generated at the job worker's end after 1-4-2000 was dutiable in the hands of the principal manufacturer.

Analysis: The appeal turned on whether duty liability could be fastened on the principal manufacturer for waste and scrap arising during job work. The Tribunal followed earlier decisions holding that, for the period after 1-4-2000, when the relevant rule regime had ceased to operate, such scrap generated at the job worker's end was not liable to duty in the hands of the principal manufacturer. The contrary view noticed on behalf of the Revenue related to an earlier period before 1-4-2000 and did not govern the present dispute.

Conclusion: The waste and scrap generated at the job worker's end after 1-4-2000 was not dutiable in the hands of the principal manufacturer, and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Where waste and scrap are generated at a job worker's premises after the cessation of the relevant rule regime from 1-4-2000, duty liability cannot be fastened on the principal manufacturer.

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